Segments

12 Months Ended

Jul. 31, 2013

Segments [Abstract]

Segments

15.       Segments

The Company’s reportable segments  in fiscal year 2013 are Telephony Products and Puerto Rico, each of which offers different products and services in different geographic areas. The Telephony Products segment provides telephone products, service and support to businesses and organizations. The Puerto Rico segment provides the sale and service of integrated communications systems, data equipment, security products and telephony billing services to Puerto Rico and the Virgin Islands. Performance of each segment is assessed independently.  During fiscal 2013, the Company disposed of its Communications Systems and Services segment and has reclassified its consolidated statements of income for fiscal year 2013 and 2012 to reflect operations of this segment as discontinued. Income from discontinued operations for fiscal 2012 totaled $455,000, which excludes approximately $920,000 of ongoing operating costs and expenses which were allocated to the Communications Systems and Services fiscal 2012 segment information disclosed below. For fiscal 2013, such ongoing operating costs and expenses are included in the Telephony Products operating segment.

Segment reporting for activity for the fiscal year ended and balances as of July 31, 2013 follows (in thousands):

	Telephony Products		Puerto Rico		Total
Revenue	$	11,129	$	9,457	$	20,586
Income (loss) from operations		(440)		320		(120)
Total assets		8,768		4,347		13,115
Capital expenditures		129		159		288
Allowance for doubtful accounts		123		162		285
Depreciation and amortization		49		85		134
Income tax expense		20		-		20

Segment reporting for activity for the fiscal year ended and balances as of July 31, 2012 follows (in thousands):

	Communications Systems and Services		Telephony Products		Puerto Rico			Total
Revenue	$	1,826	$	12,807	$	7,864	$	22,497
Income (loss) from operations		(465)		1,057		100		692
Total assets		2,178		7,616		3,812		13,606
Capital expenditures		-		100		132		232
Allowance for doubtful accounts		342		16		197		555
Depreciation and amortization		6		37		62		105
Income tax expense		-		20		-		20

Substantially all of the Company’s revenues are earned in the United States and the Commonwealth of Puerto Rico.